HomeMy WebLinkAbout585_Amending Employee Reirement System
1:59
31
"I
26/98 "14:
25/0336-
6
"I
5
'j
3"162
'2
C
3
ORDINANCE NUMBER 585
CITY OF OW ASSO, OKLAHOMA
AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM
DEFINED BENEFIT PLAN OF THE CITY OF OW ASSO, OKLAHOMA;
PROVIDING THEREIN FOR RETIREMENT BENEFITS--DEA TH AND
SURVIVOR BENEFITS FOR ELIGIBLE EMPLOYEES OF THE CITY OF
OW ASSO, OKLAHOMA, THEIR SURVIVING SPOUSES AND
BENEFICIARIES; MAKING PARTICIPATION BY EMPLOYEES
EMPLOYED AFTER THE EFFECTIVE DATE OF THE SYSTEM A
MANDATORY CONDITION OF EMPLOYMENT; PROVIDING FOR
EFFECTIVE DATE, AMENDMENT AND TERMINATION OF SUCH
SYSTEM; AUTHORIZING AND RATIFYING EXECUTION OF THE
FORMAL INSTRUMENTS AMENDING SUCH SYSTEM; PROVIDING
FOR EMPLOYER AND EMPLOYEE CONTRIBUTIONS TO FUND THE
BENEFITS, PAY OPERATING EXPENSES, AND FOR PORTABILITY OF
BENEFITS OR REFUND OF EMPLOYEE CONTRIBUTIONS UPON
EMPLOYEE LEAVING SERVICE; PROVIDING FOR A FUND TO
FINANCE THE SYSTEM, TO BE COMBINED OR POOLED BY
CONTRACT WITH OTHER INCORPORATED CITIES AND TOWNS
WITH SIMILAR FUNDS OF SUCH CITIES AND TOWNS FOR
PURPOSES OF MANAGEMENT AND INVESTMENT AS A PART OF THE
OKLAHOMA MUNICIPAL RETIREMENT FUND SPONSORED BY THE
OKLAHOMA MUNICIPAL LEAGUE; PROVIDING FOR PAYMENT OF
ALL CONTRIBUTIONS AND FUND ASSETS BY THE TREASURER TO
THE OKLAHOMA MUNICIPAL RETIREMENT FUND FOR
MANAGEMENT AND INVESTMENT; PROVIDING FOR
ADMINISTRATION OF SUCH SYSTEM BY A BOARD OF TRUSTEES
AND AN AUTHORIZED AGENT APPOINTED BY THE CITY COUNCIL;
PROVIDING PENALTIES FOR FRAUD AND DISHONEST CONDUCT;
DECLARING THE FUNDS TO BE EXEMPT FROM LEGAL PROCESS;
REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT HEREWITH; AND PROVIDING A SEVERABILITY AND
SAVING CLAUSE.
-
CITY OF OW ASSO,
CITY COUNCIL OF THE
BE IT ORDAINED BY THE
OKLAHOMA THAT:
SECTION ONE: The Employee Retirement System of the City of Owasso, Oklahoma,
is hereby amended as reflected on the attached Exhibit "A", which is incorporated herein and
adopted reference
SECTION TWO: The Employee Retirement System of the City of Owasso, Oklahoma,
except as modified in the attached Exhibit "A", shall remain in full force and effect according
to its original terms and conditions.
SECTION THREE The City Clerk and Mayor be, and they hereby are, authorized and
directed to execute the amended Retirement System Plan documents and do aU the other acts
..
attached hereto
said amendment into effect The executed amended document
is hereby ratified and confirmed all respects
necessary to put
as Exhibit
paragraph,
"A" is held
SECTION FOUR If, regardless of cause any section, subsection,
sentence, or clause of this ordinance, including the System as set forth in Exhibit
invalid or to be unconstitutional, the remaining sections, subsections, paragraphs, sentences, or
clauses shall continue in full force and effect and shall be construed thereafter as being the entire
provisions of this ordinance
SECTION FIVE Any ordinance inconsistent with the terms and provisions of this
ordinance is hereby repealed, provided, however, that such repeal shall be only to the extent of
inconsistency and in all other respects this ordinance shall be cumulative of other ordinances
regulating and governing the subject matter covered by this ordinance
the date
(30) days from
become effective thirty
SECTION SIX This ordinance shaH
of first publication as provided by state law,
Owasso
of the City of
the City Council
PASSED, APPROVED AND ADOPTED by
Oklahoma this 4th day of August. 1998
CITY OF OWASSO. OKLAHOMA
Mayor
llllHlIllllll1
\/ TU 1/"
",,-.\' ~., ../S'_<,/~
~ . -, ~
" . '. -;::.
.::: , ... ". C> -;::.
.::- 'H ".0;.
::: : c::::
- :<'::~
~::
"r;;$
",'"
-;::. ,-.-.'"
"/J/ ,\,,,-
////1 \\\\
/1111/111111\11
By:
Denise Bode
1998
4
legality on August
The foregoing ordinance was introduced before the Owasso City Council on the 4th day
of August, 1998, and was duly adopted and approved by the Mayor and City Council of the City
of Owasso, Oklahoma, on the 4th day of August, 1998, after compliance with notice
requirements of the Open Meeting Law (25 OS, Section 301, et seq)
..
2
OKLAHOMA MUNICIPAL RETIREMENT SYSTEM
MASTER DEFINED BENEFIT PLAN AND TRUST
JOINDER AGREEMENT
City of Owasso, a city, town, agency, instrumentality, or public trust located in the State of
Oklahoma, with its principal office at Owasso, Oklahoma, hereby establishes a Defined Benefit
Plan and Trust to be known as City of Owasso Plan and Trust (the "Plan ") in the form of The
Oklahoma Municipal Retirement System Master Defined Benefit Plan and Trust.
Except as otherwise provided herein, the definitions in Article H of the Plan apply.
1. Dates:
a. The Effective Date of this Joinder Agreement shall be
July 1, 1998.
b. The Effective Date of the Plan shall be July 1, 1972, the effective
date of the original plan continued without interruption through
adoption of this Joinder Agreement.
2. Employee.
Employee shall mean:
[X] Any person who, on or after the Effective Date is receiving
remuneration for regular full -time personal services rendered to
the Employer (including any elected official and any appointed
officer or employee of any department of the Employer, whether
governmental or proprietary in nature), including persons on
Authorized Leave of Absence. Employees shall not include
independent contractors. Elected members of the City Council
shall not be considered to be Employees solely by reason of their
holding such office.
[ ] Any person who, on or after the Effective Date,
1 31001.25
[X] The term Employee shall not include any individual who is
covered by any other state or local retirement system unless, with
respect to the other state or local retirement system, the
individual is in pay status currently receiving benefits and not an
active participant.
[ ] Any person who, if last hired after July 1,1972, had not reached
his 60th birthday at the time of hiring. (Deleted 8198)
3. Eligibility.
Employees shall be eligible to participate in the Plan: (Select only one)
[ ] months (any number of months up to twelve) after the
Employee's Employment Commencement Date.
[ ] On the first day the Employee's service for the Employer is no
longer temporary, probationary or provisional.
[X] On the Employee's Employment Commencement Date.
4. The Employer hereby elects the following Plan design:
[X] Mandatory Contribution Option. An employee shall be required
to contribute to the Plan for each Plan Year the percentage of his
Compensation ( "Mandatory Contributions ") required by the Plan.
Mandatory Contributions shall be made by payroll deductions.
An Employee shall authorize such deductions in writing on forms
approved by, and filed with, the Committee.
If the Employee's contributions are to be taxed deferred:
[X] Pick -U_p O tp ion. The Employer hereby elects to have the
provisions of Section 3.3 of the Plan apply. The
Employer shall pick -up and pay the percentage of each
Participant's Compensation required to be contributed as
of July 1, 1992.
[ ] Non - Contributory Option. Participants shall not be required nor
permitted to contribute to the Plan.
2 31001 -2s
5. A. Payment Options. The Employer hereby elects the following
minimum number of payments for employees eligible to receive
benefits under Article IV of the Plan:
[X] Sixty (60) monthly payments.
[ ] One hundred and twenty (120) monthly payments.
B. Plan Options. The Employer hereby elects the following plan
designation and percentage used in calculating benefits under
Section 5.1 of the Plan.
[ ] Plan AA - 2.625 %
[X] Plan BB - 2.25 %
[ ] Plan CC - 1.875 %
[ ] Plan A - 1.5%
(] Plan B - 1.25 %
[ ] Plan C - .75 %
C. Normal Retirement Me. Normal retirement age shall be:
[ ] Age 65
[X] Age 62 and completion of 30 years of credited service.
D. Vesting Options. The Employer hereby elects the following
vesting option to determine an employee's eligibility to receive
retirement benefits.
[ ] 10 Year Cliff Vesting
[ ] 7 Year Cliff Vesting
[X] 5 Year Cliff Vesting
E. Service Credit Prior to Effective Date. The Employer hereby
elects to include the following limitation of service prior to the
effective date.
[X] No limitation
[] Service credit prior to the effective date shall not exceed
years.
3 31001 -25
6. Contributions by Employees.
If Employees are required to contribute to the cost of providing benefits
under this System, either under the Pick -Up Option or the Mandatory
Contribution Option, such contributions shall be based on the plan
designation selected in Section 5 above and shall apply to pay periods
commencing on and after July 1, 1993.
a. [ ] The employee contribution formula in Section 3.2 of the Plan
shall use the following maximum percentage for the Plan Option
selected in Section 5B of this Joinder Agreement:
Plan AA - 5.25 %
Plan BB - 4.5 %
Plan CC - 3.75 %
Plan A -3%
Plan B - 2.25 %
Plan C - 1.5%
b. [X] The contribution formula shall be 4.26% of compensation. (Not
to exceed the percentages in above paragraph). (8/98)
c. [ ] Annual contribution (expressed as a percentage of payroll) shall
be shared by the Employee and Employer.
Employee portion 60%
Employer portion 40%
(Employee plus Employer percentages must total 100 %)
7. Cost-of-Living Option:
ntion:
For purposes of adjusting retiree and beneficiary pensions, the Employer
hereby elects the following:
[X] No Cost -of- Living Option.
[ ] Cost -of- Living Option. This election applies to Sections 5.1
(Normal Pension), 5.4 (Deferred Vested Pension), 6.3A and 6.313
(Death After Commencement of Pension), and 6.4 (Spouse's
Pension) and provides annual benefit increases of the smaller of
three percent (3%) or the percentage change in the Consumer
Price Index.
4 31001 -25
The effective date of the Cost -Of- Living Option shall be , 19
, the original date that the Employer elected the Cost -Of- Living Option.
8. Retiree Plan hn 3rovement Option.
Benefits payable to or on behalf of a former Employee under Article V,
Article VI, or Article VII of the Plan, which are due or in the course of
payment of the Effective Date of this Joinder Agreement, shall
[ ] be redetermined according to the Plan Option elected herein.
Such increased benefits shall be reflected in any periodic
payments due or paid on or after the Effective Date of the Joinder
Agreement. It is not intended for this change to be retroactive
and any periodic payments due prior to such date shall not be
affected.
[X] not be redetermined, but shall continue to be paid under the terms
of the Previous Plan.
9. Limitations on Optional Benefit Forms.
Section 7.2 of the Plan provides for a lump sum payment form, an
installment payment form that would be payable over a fixed number of
years (at which time all payments would cease), or the purchase of an
insured annuity. The Employer hereby elects the following:
[X] Optional benefit forms under Section 7.2 of the Plan will not be
permitted.
[ ] Optional benefit forms under Section 7.2 of the Plan will be
permitted, subject to Retirement Committee approval for any
such elections by an Employee, subject to the following
limitation(s):
(The above election has not effect on the joint and survivor optional
benefit forms under Section 7.1).
5 31001 -25
10. The Committee, consisting of the following members, agrees to
administer the Plan and Trust pursuant to the provisions thereof.
Denise Bode
Name (Please print)
Name (Please print)
Mary Lou Barnhouse
Name (Please print)
Trary Standridge
Name (Please print)
Melinda Voss
Name (Please print)
Name (Please print)
Name (Please print)
Name (Please print)
Name (Please print)
Name (Please print)
Name (Please print)
Signature
41�&� az"e-�
Signatu�r_e
�g tur6 e�YL
(A] I 15+QI"I -I Ii
filly na e
Signature
Signature
Signature
Signature
Signature
Signature
Signature
The Employer has consulted with and been advised by its attorney concerning the meaning of
the provisions of the Plan and Trust Agreements and the effect of entry into the plan and Trust.
i
Fol
31001 -25
IN WITNESS WHEREOF Moyor Denise 8oJe- has caused its
corporate seal to be affixed hereto and this instrument to be duly executed in its name and
behalf by its duly authorized offices this 4ti, day of August 1998.
City of Owasso
Attest:
By:
Title: Mayor A,A 1l) .ii /i�l��
(SE— Ab)
The foregoing Joinder Agreement is hereby approved by The Oklahoma Municipal
Retirement System thi day of 5 , 19 66 .
THE OKLAHOMA MUNICIPAL
RETIREMENT SYSTEM
By.
Title: el6+A,cvice.
Attest:
Secre ry
(Seal)
7 31001 -25
Owasso, Tulsa County, Oklahoma,
ORDINANCE NO. 585
CITY OF OWASSO, OKLAHOMA
AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM
DEFINED BENEFIT PLAN OF THE CITY OF OWASSO, OKLAHOMA;
PROVIDING THEREIN FOR RETIREMENT BENEFITS - DEATH AND
SURVIVOR BENEFITS FOR ELIGIBLE EMPLOYEES OF THE CITY OF
OWASSO, OKLAHOMA, THEIR SURVIVING SPOUSES AND BENEFI-
CIARIES; MAKING PARTICIPATION BY EMPLOYEES EMPLOYED
AFTER THE EFFECTIVE DATE OF THE SYSTEM A MANDATORY
CONDITION OF EMPLOYMENT; PROVIDING FOR EFFECTIVE DATE,
AMENDMENT AND TERMINATION OF SUCH SYSTEM; AUTHORIZING
AND RATIFYING EXECUTION OF THE FORMAL INSTRUMENTS
AMENDING SUCH SYSTEM; PROVIDING FOR EMPLOYER AND
EMPLOYEE CONTRIBUTIONS TO FUND THE BENEFITS, PAY OPER-
ATING EXPENSES, AND FOR PORTABILITY OF BENEFITS OR
REFUND OF EMPLOYEE CONTRIBUTIONS UPON EMPLOYEE LEAV-
ING SERVICE; PROVIDING FOR A. FUND TO FINANCE THE SYSTEM,
TO BE COMBINED OR POOLED BY CONTRACT WITH OTHER
INCORPORATED CITIES AND TOWNS WITH SIMILAR FUNDS OF
SUCH CITIES AND TOWNS FOR PURPOSES OF MANAGEMENT AND
INVESTMENT AS ;\ PAFlT OF THE OKLAHOMA MUNICIPAL RETIRE-
MENT FUND SPONSORED BY THE OKLAHOMA MUNICIPAL
LEAGUE; PROVIDING FOR PAYMENT OF ALL CONTRIBUTIONS AND
FUND ASSETS BY THE TREASURER TO THE OKLAHOMA MUNICI-
PAL RETIREMENT FUND FOR MANAGEMENT AND INVESTMENT;
PROVIDING FOR ADMINISTRATION OF SUCH SYSTEM BY A BOARD
OF TRUSTEES AND AN AUTHORIZED AGENT APPOINTED BY THE
CITY COUNCIL; PROVIDING PENALTIES FOR FRAUD AND DISHON-
EST CONDUCT; DECLARING THE FUNDS TO BE EXEMPT FROM
LEGAL PROCESS; REPEALING ALL ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING A SEVER-
ABILITY AND SAVING CLAUSE.
Published in the Owasso Reporter,
August 13, 1998.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA THAT:
SECTION ONE: The Employee Retirement System of the City of Owasso,
Oklahoma, is hereby amended as reflected on the attached Exhibit "A", which
is incorporated herein and adopted by reference.
SECTION TWO: The Employee Retirement System of the City of Owasso,
Oklahoma except as modified in the attached Exhibit "A". shall remain in full
force and effect according to its original terms and conditions.
SECTION THREE: The City Clerk and Mayor be, and they hereby are,
authorized and directed to execute the amended Retirement System Plan
documents and do all the other acts necessary to put said amendment into
effect. The executed amended document attached hereto as Exhibit "A" is
hereby ratified and confirmed in all respects.
SECTION FOUR: If, regardless of cause, any section, subsection, para-
graph, sentence, or clause of this ordinance, including the System as set forth
in Exhibit 'A" is held invalid or to be unconstitutional, the remaining sections,
subsections, paragraphs, sentences, or clauses shall continue in full force and
effect and shall be construed thereafter as being the entire provisions of this
ordinance.
SECTION FIVE: Any ordinance inconsistent with the terms and provisions
of this ordinance is hereby repealed, provided. however, that such repeal shall
be only to the extent of inconsistency and in all other respects this ordinance
shall be cumulative of other ordinances regulating and governing the subject
matter covered by this ordinance.
SECTION SIX' This ordinance shall become effective thirty (30) days from
the date of first publication as provided by state law.
OWASSO REPORTER
STATE OF TULSA COUNTY, ss:
Bill R. R, of lawful age, being duly sworn
and says that he is the publisher of the
Owasso Reporter, a newspaper published in
the of Owasso, Tulsa Oklahoma, a news-
paper to legal notices, advertise-
ments and as provided in Section 106 of
Title 25, Oklahoma Statutes 1971 and 1983 as
amended, and and complies with all other
requirements of the laws of Oklahoma with reference
to legal
That said a true copy of which is attached
hereto, was in the regular edition of said
newspaper and time of publication
and not in a on t ltes:
199 ~
scribed and sworn to befoJ lle this
Commission expires:
PUBLISHER'S FEE $ 87.60
PASSED, APPROVED AND ADOPTED by the City Council of the City of
Owasso, Oklahoma this 4th day of Au~"st, 1998.
CITY OF OWASSO, OKLAHOMA
Isl DENISE BODE
Denise Bode, Mayor
ATTEST:
998.
Approved as to form and legality on August 4,
Isl RONALD D. CATES
Ronald D. Cates, City Attorney
NOTE: The referenced Attachment "A" may be examined in the Human
Resources Department at Owasso City Hall.
MEMORANDUM
TO: HONORABLE MAYOR & CITY COUNCIL
CITY OF OWASSO
FROM: ALLAN E. HARDER
HUMAN RESOURCES DIRECTOR
SUBJECT: REQUEST FOR COUNCIL CONSIDERATION AND APPROVAL
OF ORDINANCE #585, AMENDING THE EMPLOYEE
RETIREMENT SYSTEM DEFINED BENEFIT PLAN
DATE: July 29, 1998
BACKGROUND:
The City of Owasso offers as a retirement benefit, participation in the Oklahoma Municipal
Retirement Fund (OMRF) Defined Benefit Plan. All regular, full -time employees except
police officers and firefighters are required to participate in the plan. Contributions to the
system are made by both the employee and the City. Previously, the contribution has been
split with the employee paying 60% and the employer paying 40% of the contribution
determined by actuarial studies. Actuarial studies are performed annually by OMRF to
determine contribution amounts necessary for acceptable fund performance.
Based upon the OMRF Employee Retirement System of Owasso, Oklahoma ACTUARIAL
VALUATION OF FUNDING REQUIREMENTS, Effective for the Year Starting July 1,
1998, Exhibit 1: SUMMARY OF 1998 -99 PLAN CONTRIBUTION RATES, funding
requirements increased from 7.1 % to 9.17% of employee compensation, the first substantial
change in 10 years. Based on the new requirement and to continue to improve employee
benefits, a decision was made during the budget process to change the contribution ratios.
This decision complied with recommendations from the Employee Benefits Committee which
includes representatives from each City department of the City. Any changes in the
contribution rates must be made by Ordinance approved by the Council.
CONTRIBUTION CHANGES:
As noted above, the Employee /Employer contribution split has been 60 %/40 %. The
contribution amendment fixes the employee contribution at 4.26% of the employee's
compensation. The City contributes the balance (4.91 %) as determined by the 1998 actuarial
study. Both contribution rates are included in the current budget. (Under the previous 60/40
contribution split, the employee share would have been 5.502 %.) OMRF, in the cover letter
to the supplied Ordinance and Joinder agreements notes "that the Employer will be required
to contribute more or less next year depending on the changes that occur in the City of
Owasso's Employee group."
I,
ACTIONS REQUIRED TO EFFECT THE CHANGES IN CONTRIBUTION RATES:
Changes in the Employee Retirement System Defined Benefit System Plan are required to be
made by Ordinance and execution of new Joinder Agreements. OMRF has provided both
documents for Council action. Both the Ordinance and Joinder Agreement have been
reviewed and approved for content by Ronald D. Cates, City Attorney.
STAFF RECOMMENDATION:
Staff recommends Council approval of the Ordinance and the Mayor and Council be
authorized to execute all documents relating to the retirement plan amendment.
ATTACHMENTS:
1. ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM
DEFINED BENEFIT PLAN
2. Joinder Agreement
3. OMRF Cover Letter
rAT in
Oklahoma Municipal
Retirement Fund
City of Owasso
Allan Harder
P.O. Box 180
Owasso, OK 74055
Dear Allen,
June 10, 1998
BOARD OF TRUSTEES
MARCY ALENAHDEII, DISTRICT 5, STILLWATER
JERRY FARNHAHI, DISTRICT 3, ADA
JAY HEIRRICHS, DISrmcr 1, BROICEN ARROW
JM HUDGENS, D=RICT 2, SALLISAw
Jm LuctasTT, JR., Disra[or 8, GUTHRD:
RUSSELL SHTTH, DISTRICT 5, MIDWEST CITY
RANDY Sw swN, AT- LARGE, SEHDlOLE
GEORGE WH,R NWN, DISTRICT 7, WEASHERFORD
HERTHA ANN YOUNG, DISTRICT 4, SHAWNEE
Jodi CON, Account Administrator
CEIVED
JUL 2 0 1998
BY:
Enclosed please find the documents which Michelle and Regina have
requested (i.e. to change the Employee contribution rate to a fixed 4.26%
effective August 1, 1998). This change will delete the Employee /Employer
contribution rate split from 60 %140% to Employee rate remaining constant and
the City contributing the difference based on the actuarial study.
Please note that the Employer will be required to contribute more or less next .
year depending on the changes that occur in the City of Owasso's Emp o
group.
The following items are enclosed:
3 Amending Ordinances
3 Joinder Agreements
ALL COPIES OF THE JOINDER AGREEMENT AND ORDINANCES MUST BE SIGNED BY
YOUR RETIREMENT COMMITTEE.
After your governing board has approved the resolution, please return the
following:
i/ 2 Ordinances
3 Joinder Agreements
After the OMRF Board of Trustees has signed the Joinder Agreements, one
original will be returned for your files. If you have any questions about the
enclosed material, please feel free to call. Have a great daylll
Enclosures
qa7� C
100 North Broadway Oklahoma City, Oklahoma 73102 1- 800 - 395 -2662 Ext. 6313
g4